The stock exchanges sink, Piazza Affari is the worst in Europe

A seat in deep red. The European stock markets, which started badly, collapsed at the halfway point, with sales affecting all sectors. In Piazza Affari the Ftse Mib, black jersey among the stock exchanges of the Old Continent, drops 2.70% to 24,604 points, while the BTP-Bund spread rises to 108 points. Also down were Madrid (-2.6%), Paris (-2.2%), London (-1.8%) and Frankfurt (-1.6%). On the main Milanese list, Cnh Industrial lost 4.03%, Stm 3.98% and Moncler 3.96%. Reductions of over three percentage points also for Banco Bpm, Unicredit, Bper, Altantia, Stellantis and Buzzi Unicem. To weigh, analysts explain, are investor concerns about the delta variant of the coronavirus and the hypothesis of a tightening of monetary policy by the Fed. While the ECB raises the curtain on the agreement reached regarding the revision of the strategic policy framework monetary policy, which began in January 2020 and suspended during the pandemic, the American central bank in the minutes of the last meeting, emphasized the high uncertainty of the economy, while extensively discussing a reduction in asset purchases within it. “The standard of ‘substantial further progress’ has not yet been achieved, although progress is expected to continue,” read the minutes of the meeting on 15 and 16 June. The Fed has been repeating for months that it wants to see “substantial further progress” before deciding on tapering, or the reduction of asset purchases, which at the moment proceeds to 120 billion dollars a month. In any case, “several participants mentioned that they expect that the conditions to reduce the speed of purchases will be centered sooner than expected in previous meetings”, the Fed continues, highlighting how the economic data of the coming months will allow a “better assessment of the trajectory the labor market and inflation “. But few in the central bank predict that the economy will be ready for a rate hike “sooner than expected.” In fact, most Fed members consider the uncertainty about the economic outlook to be “high” and this implies “significant uncertainty also about the appropriate path for interest rates”. The debate on the reduction of purchases will continue at the next meeting on 27-28 July. There is broad agreement in the Fed that “for prudent planning, it is important to be well positioned to reduce purchases, if necessary, in response to unexpected economic developments, including faster-than-expected progress.”